Following the Royal Commission into banking and insurance, Eric Insurance has chosen to address the challenges presented by the changing insurance industry. We are committed to making a positive change and look forward to what the future brings.
The journey so far…
Eric Insurance is entirely Australian owned and has been a general insurer in the car and motorcycle industry for many years. While we’re a big enough company to make a difference, we can still focus on the finer details such as delivery, quality of products, customer service and long-term relationships. We have the capability to be more flexible and meet the challenges of the industry head on.
As you may be aware, the “Add on Insurance” (AoI) market came under increased scrutiny over the last 3 years resulting in many competitors withdrawing from the market. However, Eric remains committed to the dealer industry and the retail insurance category and recognises that there is a consumer need for these products that Eric Insurance can meet. We have, and will continue to, engage in positive dialogue with the Australian Securities & Investments Commission (ASIC) and the other regulators.
Our view is that the key areas of concern, which are best summed up in ASIC report no. 492, can be addressed by significant improvements to four areas; product, pricing, sales practice and mis-selling. ASIC wants to ensure that consumers receive good value from insurance products and so does Eric Insurance.
What does this mean for the future of Eric Insurance?
We have embraced the issues raised and will ensure that consumers are treated fairly and receive good value for the insurance products they purchase. Integral to this strategy is ensuring we take a more active role, via our authorised representatives and insurance partners, in helping customers to understand our products so they can make informed decisions.
We have taken the issue of mis-selling very seriously and have invested in the design, build and implementation of the new Dealer Insurance sales platform “Genesis”. Genesis will reduce the risk of mis-selling by presenting the right product to the right customers with full disclosures. We have recently commenced our pilots of Genesis in dealerships and are eager to see where it will take us from here.
We are confident that the suite of initiatives we have taken will lead to appropriate outcomes for consumers. Where other Insurers have stepped back from the industry, we have chosen to address the concerns of both regulators and the community to engineer our business to meet the needs of all of our stakeholders. At Eric Insurance, we are committed to making positive change and look forward to continuing our relationship with our partners and most importantly our customers.
Chief Executive Officer